Bitcoin price has just scored a high of $412.41 on Bitstamp less than an hour ago. As we predicted yesterday, the new bullish wave is continuing to control the market and is pushing bitcoin price steadily towards the next resistance level at $416.
Predicting Possible Price Correction Thresholds:
Via studying the 1 hour (BTC/USD) from Bitstamp (look at the below chart), plotting the 20, 50 and 100 EMAs and executing a Fibonacci resistance fan that spans between the low scored on the 22th of October ($266) and the high scored earlier today ($412.41), we can notice the following:
- The price is still way higher than the 20, 50 and 100 EMAs, which reflects the market’s buying power and so long as it remains this way, we can expect it to test the $416 resistance level within the next few hours.
- As per the Fibonacci resistance fan that we executed, we can see that the price is always supported by the fan levels whenever price correction attempts to pull the price down, as it has been supported by the 0.382 fan level which prevented further price drop last Sunday (look at the below chart). Accordingly, we expect the price correction wave to pull the price down to around $386, which corresponds to the 0.75 fan level, which will prevent further price drop.
Is the Market Overbought As Denoted By The 1 Day Charts?
By examining the 1 day (BTC/USD) charts from Bitstamp; plotting William’s Alligator Indicator and executing the MACD (look at the below chart), we can notice the following:
- The MACD is still confirming the continuation of the current uptrend as we can still see it traveling in the positive zone with the blue uptrend line above the red downtrend line, so no signs of an overbought market can be observed using the MACD.
- The alignment of the William’s Alligator averages are still in favor of continuation of the current uptrend, with the green trend line above the red trend line and both are on top of the blue trend line.
Conclusion:
Bitcoin price is continuing to print higher highs and it is rising on its way to test the $416 resistance level, which is likely to happen within the next few hours. Although a price correction downwards wave can halt the bullish rally for some time, our analysis didn’t find evidence of stoppage of the bullish wave soon.
Charts from Bitstamp; hosted by Tradingview.com
